(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009component of an entitycompound financialinstrumentconsolidated financialstatementsconstruction contractconstructive obligationOperations and cash flows that can be clearly distinguished,operationally and for financial reporting purposes, from therest of the entity.A financial instrument that, from the issuer’s perspective,contains both a liability and an equity element.The financial statements of a parent and its subsidiariespresented as those of a single economic entity.A contract specifically negotiated for the construction of anasset or a combination of assets that are closely interrelated orinterdependent in terms of their design, technology andfunction or their ultimate purpose or use.An obligation that derives from an entity’s actions where:(a)(b)by an established pattern of past practice, publishedpolicies or a sufficiently specific current statement, theentity has indicated to other parties that it will acceptcertain responsibilities, andas a result, the entity has created a valid expectation onthe part of those other parties that it will discharge thoseresponsibilities.contingent assetA possible asset that arises from past events and whoseexistence will be confirmed only by the occurrence ornon-occurrence of one or more uncertain future events notwholly within the control of the entity.contingent liability (a) A possible obligation that arises from past events andwhose existence will be confirmed only by the occurrenceor non-occurrence of one or more uncertain future eventsnot wholly within the control of the entity, or(b)a present obligation that arises from past events but isnot recognised because:(i)(ii)it is not probable that an outflow of resourcesembodying economic benefits will be required tosettle the obligation, orthe amount of the obligation cannot be measuredwith sufficient reliability.control (of an entity)current taxThe power to govern the financial and operating policies of anentity so as to obtain benefits from its activities.The amount of income tax payable (refundable) in respect of thetaxable profit (tax loss) for the current period or past reportingperiods.© IASCF 211